Full tax invoice or simplified tax invoice
| Tax invoice | Simplified tax invoice | |
|---|---|---|
| When | Supplies to VAT-registered buyers, unless a simplified invoice is allowed | Buyer is not VAT-registered, or the value of the supply is AED 10,000 or less |
| Buyer details | Name, address and TRN (if registered) | Not required |
| VAT shown | Per line and in total, in AED | Total payable and VAT charged |
Fields on a tax invoice
- The words “Tax Invoice”, clearly displayed.
- Supplier’s name, address and Tax Registration Number (TRN).
- Buyer’s name, address and TRN, where the buyer is registered.
- A sequential invoice number that identifies the invoice uniquely.
- Date of issue, and date of supply if different.
- Description of the goods or services.
- For each line: unit price, quantity, VAT rate and amount payable in AED.
- Any discount offered.
- Gross amount payable in AED, and the VAT amount in AED with the exchange rate if another currency is used.
- A statement that VAT is charged on reverse charge, where it applies.
Fields on a simplified tax invoice
- The words “Tax Invoice”.
- Supplier’s name, address and TRN.
- Date of issue.
- Description of the goods or services.
- Total consideration and the VAT charged.
Worked example: a B2B tax invoice at 5%
An illustration of an invoice from a Dubai supplier to a registered buyer.
| Line | Qty × unit price (AED) | Taxable (AED) | VAT 5% (AED) |
|---|---|---|---|
| Office chairs | 20 × 450.00 | 9,000.00 | 450.00 |
| Installation | 1 × 600.00 | 600.00 | 30.00 |
| Discount | − 400.00 | − 20.00 | |
| Total | 9,200.00 | 460.00 | |
| Amount payable | AED 9,660.00 |
At AED 9,660 the supplier could issue a simplified invoice, since the value is under AED 10,000, but a full tax invoice is safer for a registered buyer who needs to recover input VAT.
Timing, credit notes and records
- Issue within 14 days of the date of supply. The same 14-day window applies to e-invoices under the e-invoicing rules.
- Tax credit notes are issued when the value of a supply falls after the invoice, for example a return or discount. They show the original invoice number and date, the reason, and the change in value and VAT in AED.
- Keep records for at least five years from the end of the tax period, and longer for some records, such as fifteen years for real estate.
- Under e-invoicing, the structured data, not a PDF, is the invoice. It must be stored in the UAE.
Check before you issue
- Your TRN and the buyer’s TRN are correct (15 digits).
- VAT is shown in AED when the invoice is in another currency.
- Zero-rated and exempt lines are marked and explained.
- The invoice is issued within 14 days of supply.
- Credit notes refer to the original invoice.
- For e-invoicing dates and ASP deadlines, read UAE e-invoicing explained.
Frequently asked questions
What must a UAE tax invoice show?
The words “Tax Invoice”, supplier and buyer names, addresses and TRNs, a sequential number, issue and supply dates, a description, unit price, quantity, VAT rate, discount and amounts in AED, with VAT in AED.
When can a simplified tax invoice be issued in the UAE?
When the buyer is not VAT-registered, or the supply is worth AED 10,000 or less.
How soon must a UAE tax invoice be issued?
Within 14 days of the date of supply.
How long must UAE VAT records be kept?
At least five years from the end of the tax period, and longer for some records such as fifteen years for real estate.
Practical, India-specific guides from the team behind WebSoftOS cloud ERP, by Ridhi Technologies, Zirakpur, Punjab.